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McDonald's raises hourly wages for company-owned restaurants

The increases will not directly impact workers at McDonald’s franchises, which make up 95 percent of its U.S. restaurants.
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A customer receives an order from a worker in a protective mask at the drive-thru of a McDonald's restaurant in Los Angeles, Calif., on Tuesday, April 28, 2020.Kyle Grillot / Bloomberg via Getty Images
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McDonald’s is raising the hourly wages for its U.S. company-owned restaurants as the fast-food chain looks to hire 10,000 workers for those locations.

The broader restaurant industry is facing a labor crunch. Fewer people are returning to the workforce than expected, and eateries are trying to meet consumer demand as it comes roaring back. The hiring announcements that usually arrive in the spring and summer months have been accompanied this year by news of wage hikes, referral and retention bonuses and other enhanced benefits. Chipotle Mexican Grill, for example, said that its average wage per hour would be $15 by the end of June.

Entry-level employees will make $11 to $17 per hour.

Workers at McDonald’s company-owned locations will see pay raises of an average of 10 percent over the next several months. Entry-level employees will be making $11 to $17 per hour, and shift managers will make $15 to $20 an hour based on location.

“Together with our franchisees, we face a challenging hiring environment, and staying ahead means we must constantly renew our commitment to offer one of the leading employment packages in the industry,” McDonald’s USA President Joe Erlinger said in a message to the U.S. system viewed by CNBC.

Based on the current labor market, McDonald’s expects that the average wage for employees of its company-owned restaurants will be $15 per hour by 2024.

However, these increases will not directly impact workers who are employed by restaurants owned by McDonald’s franchisees. The fast-food giant franchises 95 percent of its U.S. restaurant footprint.